Market Update: 30th Anniversary Of 1987 Crash
Overnight, Hong Kong Stocks fell -2% out of nowhere then tried to recover. That triggered more selling across the globe. Today happens to be the 30 year anniversary of the Oct 19, 1987 crash. Just to put that crash in perspective the Dow plunged 508 points or 22.6% in one day. That would roughly equal 5,000 points today!
In Tuesday’s update I wrote, “In the short-term the market is very extended to the upside and we have to expect a little short-term pullback in near future. The Dow broke above 23k this morning and is now over 700 points above its 50 DMA line. That’s extended, if you ask me. I would love to see a near term pullback…” The very next day (yesterday), the Dow GAPS UP and shoots up another 160 points out of nowhere. The culprit yesterday was IBM— I don’t buy it. This is classic late-stage action and in the short term the market is way over due for a nice healthy pullback – even back into the 50-day moving average. Either way, very good job on our part not buying in the last few days. Instead, we will let others get sucked in and patiently wait to buy the bounce after the next dip. Take a look at the attached annotated chart. Just some good food for thought.
FLS Portfolio:
The FLS portfolio continues acting well. ADBE is up nicely after reporting earnings. The protective stops were moved up in the weekend report to protect our gains. Here is a snapshot of the portfolio before Thursday’s open:
Positions:
The service owns:
ADBE +48.29%, BABA +83.46%, CAT +22.49%, ISRG +12.72%, NFLX +13.32%, NVDA +18.04%, RMD +1.51%, MNST +0.45%
The service will exit:
ADBE @ 143.74, BABA @ 166.67, CAT @ 120.07, ISRG @337.27, NFLX @179.27, NVDA @172.67, RMD @ 75.17, MNST @54.13
Working Orders:
No new working orders
Disclaimer:
This analysis contains information from resources believed to be reliable but are not guaranteed as to accuracy or wholeness as of the date of this publication. Past performance is not necessarily indicative of future results. There is always a risk of loss in trading and investing. Opinions articulated are subject to change without notice. This analysis and any opinions expressed are intended for educational purposes only and should NOT BE interpreted as a call for engagement in any transaction involving the purchase or sale of any security or investment product or service. The risk of loss in investing and or trading can be substantial, and traders/investors should carefully consider the inherent risks of such an investment in light of their financial condition. The author, firm, associates, or the firm’s clients may have a position in any of the investments mentioned and their positions are subject to change without notice. Any reproduction or retransmission of any portion of this report without the express written consent of 50 Park Investments is strictly prohibited.
